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CC - Item 4D - AB84 - Expenditure of Public Funds on Organization Forming Political Action Commmittees - Oppose S \\pn,�% stafteport TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: MAY 5, 1999 RE: AB 84(GRANLUND)-EXPENDITURE OF PUBLIC FUNDS ON ORGANIZATIONS FORMING POLITICAL ACTION COMMITTEES - OPPOSE AB 84 (Granlund) seeks to prohibit cities, counties and special districts from paying membership dues to any organization that contributes to or establishes a Political Action Committee(PAC). This bill is in direct response to the League of California Cities formation of a PAC to defray the costs of placing an initiative on state ballot to protect local funding sources. Current state law allows direct lobbying activities by cities and other local entities. However, it does not grant specific authorization to local governments to expend public money on PAC activities. Because specific authorization is lacking, Assemblymember Granlund believes that it is inappropriate to use public funds to pay membership dues in organizations that engage in such activities. Accordingly, the Assemblymember has introduced a bill to ensure that his point of view prevails. I i The practical impact of AB 84 on the City of Rosemead is probably not significant. To date, the Council has not indicated whether it supports the current League efforts to form a PAC.and the City does not contribute directly to any PACs. However, if the Council is supportive of the League's efforts to form a PAC for the purposes of placing an initiative on the ballot, it would be appropriate to oppose the bill because of its potential to limit local government influence on policy formation at the State level. Attached is a copy of AB 84 and a recent committee analysis of the bill for the Council's review. RECOMMENDATION: It is recommended that the City Council oppose AB 84 (Granlund) and authorize the Mayor to send the appropriate correspondence. COUNCIL AGENDA .c,vemoab84 fp MAY 111999 ITEM No.iZ• tt . J • MRY 05. '99 08:32PM GONSALVES & SON P.1/2 AMENDED IN SENATE APRIL 26, 1999 AMENDED IN ASSEMBLY APRIL 8, 1999 AMENDED IN ASSEMBLY MARCH 11, 1999 CALIFORNIA LEGISLATURE-1999-2000 REGULAR SESSION ASSEMBLY BILL No. 84 Introduced by Assembly Member Granlund (Coauthor: Assembly Member Frusetta) December 9; 1998 An act to add Section 53072.5 to the Government Code, • relating to political committees. LEGISLATIVE COUNSELS DIGEST . AB 84, as amended, Granlund. Political committees: public entities. Existing law generally prohibits any elected state officer, • appointee, employee, or consultant from using or permitting others to use state resources for political campaign activity. This bill would prohibit a city, county, special district, or other local governmental agency from using public funds to pay membership dues or membership fees to any organization that is, makes defined contributions to, or establishes or maintains, a committee as defined under the Political Reform Act of 1974 that is established and registered with the Secretary of State on and after January 1., 1999, . Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. • 96 • f1F]Y e5.'99 ee:33AM GONSALVES & SON P.2/2 AS 84 — 2 — The people of the State of California do enact as follows: 1 SECTION 1. Section 53072.5 is added to the 2 Government Code, to read: 3 53072.5. No city, county, special district, or other local 4 governmental agency may use public funds to pay 5 membership dues or membership fees to any 6 organization that is, makes any contribution to, or 7 establishes or maintains, a committee as defined in 8 Section 82013 that is established and registered with the 9 Secretary of State on and after January 1, 1999. For 10 purposes of this section, "contribution" has the same 11 meaning as defined in Section 82015. For purposes of this 12 section, "contribution" does not include the 13 communication by an organization of its endorsement of 14 a candidate made either directly to the candidate or in its 15 membership based newsletter. 16 SEC. 2. It is the intent of the Legislature that no 17 committee, as defined in Section 82013 of the 18 Government Code, that is established and registered with 19 the Secretary of State on and after January 1, 1999, and 20 that is established, managed, or maintained with any 21 public funds shall participate in any campaign involving 22 the qualification or election of a candidate or ballot, 23 measure. • Or 96 :arch,by&:11:Rme BS '99 Bg:QSRM GONSRLVES & SON bnp://diafstatns----..ccurdpdsbscg: LSTA I E and FEDERAL LEGISLATION ION STATE and FEDERAL REGULATIONS: NEW S/REFERENT-1E LSTATE p MESSAGE OF THE DAV SITE INDEX IIHOME ifPACK Ti Perform another search The parameters for this search: Bill ID(s): ab84 Print strategy: long CA AB 04 AUTHOR: Oranlund Frueetta TITLE: Political Committees: Public Entities LOCATION: Senate Elections and Reapportionment Committee SUMMARY: Prohibits a city, county, special district, or other local governmental agency from using public funds to pay membership dues or membership fees to any organization that is, makes defined contributions to, or establishes or maintains, a committee as defined under the Political Reform Act of 1974 that is established and registered with the Secretary of State on and after 1/1/1999. STATES: 12/09/1998 INTRODUCED. 01/11/1999 To ASSEMBLY Committee on ELECTIONS, REAPPORTIONMENT AND CONSTITUTIONAL AMENDMENTS. 03/11/1999 Prom ASSEMBLY Committee on ELECTIONS, REAPPORTIONMENT AND CONSTITUTIONAL AMENDMENTS with author's amendments. 03/11/1999 In ASSEMBLY. Read second time and amended- Re-referred to Committee on ELECTIONS, REAPP & CON AMEND. 03/22/1999 Prom ASSEMBLY Committee on ELECTIONS, REAPPORTIONMENT AND CONSTITUTIONAL AMENDMENTS: DO pays. 03/24/1999 In ASSEMBLY- Read second time. To third reading. 04/08/1999 In ASSEMBLY. Read third time and amended. To third reading. 04/15/1999 In ASSEMBLY. Read third time. Passed ASSEMBLY. *****To SENATE. 04/21/1999 To SENATE Committee on ELECTIONS AND REAPPORTIONMENT. 04/26/1999 From SENATE Committee on ELECTIONS AND REAPPORTIONMENT with author's amendments. 04/26/1999 Ia SENATE. Read second time and amended. Re-referred to Committee on ELECTIONS AND REAPPORTIONMENT. END OF REPORT Perfomi another search 5/5/999:16 AM MAY 25 '99 08:06AM GONSALVES & SON P.3/4 In analysis text, brackets have special meaning' [A> <A) contains added text, and [Do cD) contains deleted text. ab 84 aft 19990413 BILL ANALYSIS ASSEMBLY THIRD READING AE 84 (Granlund) As Amended April B, 1999 Majority vote SUMMARY: Prohibits cities, counties, special districts, and other local governmental agencies from using public funds to pay membership dues to political committees. Specifically,this bill: 1) Prohibits a city, county, special district, or other local governmental agency, from using public funds to pay membership dues or fees to: a) Any political committee, as defined by the Political Reform Act of 1974 (PRA) , that is established and registered with the Secretary of State (SOS) on and after January 1, 1999; and, b) Any organization that makes a contribution to, establishes, or maintains, a political committee, as defined by PRA, that is established and registered on and after that date. 2) States the intent of the Legislature that no committee established and registered on and after January 1, 1999, that is established, managed, or maintained with any public funds shall participate in any campaign involving the qualification or election of a candidate or ballot measure . EXISTING LAW: 1) PRA generally defines three types of "committees" : a) recipient committees that receive contributions totaling $1,000 or more in a calendar year; b) Independent expenditure committees that make independent expenditures totaling $1,000 or more in a calendar year; and, c) major donor committees chat make contributions totaling $10,000 or more in a calendar year. 2)Allows cities, counties, and local agencies to lobby the Legislature directly or through a representative, to enter into associations that lobby the Legislature directly or through a representative, and makes the costs and expenses of that activity proper charges against the city, county, or local agency. 3)Requires any city to file with SOS periodic reports disclosing membership dues payments to any organization that spends 10t of its total expenditures, or $15,000 or more, during any calendar quarter on lobbying activities. FISCAL EFFECT: Unknown MAY 05 '99 O8:06AM GONSALVES & SON P.4/4 COMMENTS: The author's office indicates that this bill was introduced in response to an announced effort by the League of California Cities (League) to qualify an initiative for the November 2000 ballot that would protect local property taxes and guarantee cities and counties the revenue they receive from vehicle registration. The intent of the initiative is to create stability in this source of funding for city services. The League intends to form a political action committee to collect contributions to defray the high cost of the initiative campaign. The author of this bill believes that taxpayer funds should not be used to create or maintain activities of a political action committee. Public moneys may not generally be spent for campaign purposes without clear statutory authority. Local officials who spend public money on campaigns are subject to prosecution for violation of criminal statutes, such as embezzlement and other crimes. As discussed above, however, state law expressly authorizes cities, among other local agencies, to expend public funds for lobbying the Legislature directly or by joining an association that engages in lobbying activities. Public funds cannot be used to gather signatures for an initiative or referendum measure, or to promote a measure that has qualified for the ballot, without clear and explicit legislative authorization. This bill would go a step further and prohibit the use of public moneys by a city, county, district, or other local agency, to belong to an association of other local agencies that engages in campaign activities, even when public funds are not used for those activities . The League, which opposes this bill, states that its intent in establishing a committee is to create a "parallel organization" to support the League' s efforts to communicate its position on key ballot measures and legislative issues. There will be no dues money from California cities used, and the organization will make no contributions to candidates for state or local office. It is strictly established to advocate/communicate on behalf of city issues. This will remove any appearance of impropriety in representing the position of an organization of public agencies. Thus, notwithstanding the apparent purpose of the author to stop a practice that the author finds questionable, the intent of the League is to communicate the message of city officials on key issues, an option that should be available to the cities of California. Analysis Prepared by: Romulo I. Lopez / E. ,R. & C.A./ (916) 319-2094